Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a655763

F&C gives Tigue’s £2.6bn investment trust global makeover

by Emma Dunkley on Feb 04, 2013 at 09:37

F&C gives Tigue’s £2.6bn investment trust global makeover

F&C has created two global portfolios and a new performance benchmark for Jeremy Tigue’s £2.6 billion Foreign & Colonial Investment Trust .

The changes to the oldest investment trust, launched in 1868, are part of a strategy to increase global exposure and diversify the trust’s sources of income.

The new Global Income portfolio, valued at £150 million or 6% of the investment portfolio, consists of 200 stocks and has a dividend yield of 4.5%. The portfolio has been funded by sales of UK stocks.

Ten of the trust’s existing holdings have been transferred into a new Global Funds Portfolio, which is valued at £110 million or 4.3% of the portfolio. This sub-fund will be used for investing in specialist areas globally over time.

The changes to the trust mean the UK weighting has dropped from 33.7% at the end of last year to 22% at the end of January.

The FTSE All World index has been put in place to measure the performance of the new, more global mandate, instead of the previous benchmark which comprised 40% FTSE All Share and 60% FTSE World ex UK.

The trust’s chairman Simon Fraser said: ‘Through increasing our global exposure, the benchmark and portfolio changes will build on our record of long term income and capital growth.

‘Over the last 10 years our dividend has increased by 143% and the share price by 97%. In 2012 we outperformed both the old and new benchmarks and increased the dividend by 20%. We are confident these changes will ensure we continue to deliver growth in income and capital for our shareholders.’

The trust is up 39.39% in share price terms over three years, against the FTSE World’s 36.20% and is trading on a discount of 11%.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

The Citywire guide to investment trusts

Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.

More about this:

Look up the shares

Look up the investment trusts

Look up the fund managers

  • Jeremy Tigue
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Read more...

SJP soft-closes Asante and Wood funds

by Robert St George on Apr 23, 2014 at 15:28

Sorry, this link is not
quite ready yet